An employee prepared an appraisal of a property for his real estate development company. The employee had been told that the appraisal would be used by the company to attract a potential investor, Mr. Jones, for the company's client, Mr. Lee. Because the appraiser carelessly forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate. Mr. Jones was misled about the value of the land and suffered a financial loss of $20 000. On these facts, which of the following is true?
◦ To win in an action against the appraiser, Jones must prove that the appraiser owed him a duty of care, fell below the standard of care owed, and thereby caused him a foreseeable loss because of his reliance on the information.
◦ If Jones sues the appraiser, he cannot also sue the employer.
◦ The cause of action most likely to be taken by the investor is defamation.
◦ A person cannot be sued for words that cause loss, only for actions that cause physical injury.
◦ Jones could not take any action because he had no contract with the company or the appraiser.
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